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KCCI, BMG chiefs concerned over proposed changes in trade laws sans industry input KARACHI
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STAFF REPORT
USINESSMEN Group (BMG) Chairman Siraj Kassam Teli and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Haroon Agar expressed concerns over proposed changes in the Trade Organisation Act, 2012 and demanded that the country’s business and industrial stakeholders, especially the KCCI must be taken onboard before any changes were implemented. They strongly urged that, for the sake of Pakistan’s economy, no changes in the said Act be made without consultation with the business and industrial community of Pakistan through their genuine representatives. They said the true spirit of Trade Organisations Ordinance, 2007 must not change in the Trade Organisation Act, 2012. They demanded that a meeting be convened with all the trade bodies of the country for due deliberations on the Trade Organisation Act, 2012. Teli stated after approval from Na-
tional Assembly, the Act 2012 had been sent to Senate for consensus and approval but the Senate’s Standing Committee on Commerce Chairman Senator Ghulam Ali belonged to a particular business group and is himself a party in the matter who has proposed several amendments in the Act. We cannot accept a unilateral decision based on vested interest at all, he said. Teli said the Trade Organisation Act, 2012 and its rules must be revisited in consultation with all stakeholders owing to controversial new clauses. The new Act, Teli said, was not at all in the spirit of the Trade Organisations Ordinance, 2007 which was prepared with con-
sultation of genuine stakeholders across the country. The prime objective of the Trade Organisations Ordinance, 2007 was to eliminate fake and bogus associations, he said. He stressed that today’s world is a global village where economic power is of utmost importance which made it imperative to have correct economic policies to survive in the comity of nations. Therefore, it is very important to have genuine representative trade bodies for interaction, resolution, and formulation of right policies with the government, said Teli. Teli recalled that a neutral committee headed by Justice (r) Saleem Akhtar of the Supreme Court consulted all
stakeholders of the business and industrial community of Pakistan and after detailed deliberations and meetings stretching over a period of two years, the Trade Organisation Ordinance, 2007 was promulgated with consensus. Implementation of the 2007 Act, he said, put an end to irregularities in the process of registration of trade bodies which proved the fact that the demand and promulgation of this Ordinance was genuine. Agar said owing to reservations of the business and industrial community on the recently passed Trade Organisation Act, 2012 by the National Assembly without consultation of all genuine stakeholders across Pakistan, KCCI had sent a letter to the honourable president of Pakistan and the prime inister to intervene into the matter and take onboard all genuine stakeholders. Speaker of National Assembly, Senate Chairman along with heads and members of Standing Committees of National Assembly and Senate on Commerce were also requested for their involvement to remove the apprehensions of the business and industrial community in this regard, he said.
Pakistan may accord MFN status to India later this month: Rao NEW DELHI INP
Pakistan is most likely to announce the Most Favoured Nation (MFN) status to India before the Annual Partnership Summit later this month said Indian Commerce Secretary SR Rao. Commerce Minister Makhdoom Amin Fahim and Secretary Munir Qureshi are scheduled to visit India to participate in the three-day Summit in Agra, beginning January 27. Ministers and officials from several countries are also expected to attend the annual summit. Indian Commerce Secretary SR Rao said there is “every likelihood” that Pakistan will make an announcement “by that time”. Rao's comments were in response to a question forth by reporters asking when the neighbouring country is expected to accord the muchawaited MFN status to India. Pakistan has missed the deadline of December 31, 2012, for phasing out the negative list regime, which would technically mean automatic grant of MFN status. However, Pakistan’s Foreign
Secretary Jalil Abbas Jilani had on Friday said certain stakeholders in Pakistan had “some reservations” about giving MFN status to India and the issue will be discussed at an upcoming meeting between the sides. Pakistan in March, 2012 had moved to a negative list regime for opening its market to trade for about 7,000 Indian goods against about 2,000 under the positive list. Under the negative list regime, India cannot export 1,209 items to Pakistan. Indian Commerce and Industry Minister Anand Sharma had expressed hope in December last year that Pakistan would honour its assurance of granting MFN status to India. The bilateral trade between the countries stood at about USD 2 billion in 2011-12. Rao also said during April-November 2012, Pakistan's exports to India jumped by about 50 percent in a year-onyear comparison. Responding to reports about Pakistan refusing passage of Indian goods trucks at the line of control (LoC) in Poonch district of Jammu and Kashmir, Rao said, “That was closed for some repairs I believe. It stands open as per our information”. He said that all land customs stations are open and trade is flowing as usual.
“There are some infrastructure constraints on Pakistan’s side which they are trying to address,” he said, adding the Pakistan trade minister and the secretary “has assured us that they will take all possible steps in improving the infrastructure on their side”. “We have close to 60 land customs stations across our land border.
Five years of democratic rule proved difficult for masses, economy: IWCCI
IslamaBad: Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Saturday said the policies and performance of the government in the last five years had pushed the country towards total economic collapse. The democratic government disappointed a majority as multiple crises left millions insecure and vulnerable, said IWCCI President Farida Rashid while speaking to businesswomen. Government failed to improve situation of employment, education, energy, environment and equity which was part of its manifesto, she said. Rashid said policies to promote nobility and hammer the poor had left the economy half-dead while the rupee eroded by 36 percent in five years, getting a prominent position in the club of worst performing currencies. Despite warnings, the government accumulated the biggest mountain of debt in the history of the country, pushing government debt from 6 trillion to 13 trillion, she said. The energy crisis was used to meet personal goals while CNG decisions left millions jobless and starving as a majority of those who lost jobs at filling stations and workshops have no other marketable skill, she said. ONlINE
Traders appreciate FBR for appointing two deputy chairmen laHORE: The business community appreciated Federal Board of Revenue (FBR) Board-in-Council for appointing two deputy chairmen and termed it as a decision in the right direction that would strengthen public-private sectors liaison. In a statement issued on Saturday, the former LCCI vice president Aftab Ahmad Vohra said the new Deputy Chairmen Shahid Rahim Sheikh and Malik Abdul Samad were not only experienced but also had an excellent track record that would help solve business community issues. Due to the ongoing economic scenario and pressing engagements of the FBR Chairman, it was very difficult to have a direct access to the body, he said. It is very wise on the part of the FBR to appoint two deputy chairmen to look after day-to-day affairs, he added. ONlINE
Pakistani exhibitors put up a good show at Heimtextil Trade Fair FRANKFURT INP
219 companies from Pakistan participated in the Heimtextil Trade Fair in Frankfurt where Pakistan was ranked 4th in terms of numbers of exhibitors from a single country. Exhibitors of textile industry are optimistic of substantial increase in exports of their products this year as they made good business contacts during the Heimtextil Trade Fair in Frankfurt. A good number of buyers and professionals visited the Pakistani stalls and appreciated the quality of products displayed by the Pakistani exhibitors. The exhibitors from Pakistan participated in the world’s largest trade fair of textile products which included bed wears, towels, curtains, table wears, cushions, dresses and other related accessories. About 2,600 exhibitors from 80 different countries participated in the fair. Pakistan Ambassador to Germany
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Pakistan Ambassador to Germany Abdul Basit at Pakistan pavilion during his visit to Heimtextill Trade Fair in Frankfurt. INP
Abdul Basit in a visit to the fair, which concluded on Saturday, said Pakistani businessmen and diaspora were the backbone of Pakistan's economy. Under the most difficult of circumstances they have
not allowed their commitment to Pakistan waiver. He said without their unflinching faith in Pakistan, our economy would have been in a far more difficult situation. He advised the Pakistani entre-
preneurs to take full advantage of the EU tariff concessions on 75 items, valid this year. The Pakistan Ambassador visited Pakistan Pavilions and met with the exhibitors. He was apprised of issues being
faced by them. They informed him that the energy crisis in the country had been affecting production adversely and immediate measures were needed for sustainable development of the industry. The Ambassador assured them that their concerns and problems would be conveyed to the authorities concerned for appropriate action. Basit urged them to spend a fair portion of their income on research and development (R&D) as only innovative and trendy products could keep them in the market in this rapidly changing world. Basit also met with the director of the board of Frankfurt Messe, In-charge of Heimtextil Fair, Detlef Braun, and exchanged views on the arrangements and facilities provided by the management to the exhibitors. He appreciated the role of Germany for promotion of international trade. Braun thanked the Ambassador and assured the management would continue to improve its facilities in the exhibition halls for both the exhibitors and the visitors.
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Business 02 Haulers oppose PSO’s new logistics plan to replace old oil tankers Transporters claim the move will result in losses worth billions of rupees KARACHI ISMAIl DIlAWAR
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aulers fear what they call a ‘backbreaking loss’ worth billions of rupees as Pakistan State Oil (PSO) plans replacement of hundreds of “old tank lorries” under the company’s new logistics’ standardisation roadmap. PSO Managing Director (MD) and CEO Naeem Yahya Mir on Saturday convened and chaired a meeting at the PSO House, with the company’s logistics business partners that prominently included transporters, to take onboard all stakeholders on the company’s plan to facilitate the transportation of POL products on a new logistics vision. According to a PSO statement, the members of all factions of Oil Tankers Cartage Association (OTCA) and All Pakistan Oil Tankers Owners Association (APOTOA) from Karachi and other parts of the country attended the meeting. The new roadmap provides for replacement of aging oil tankers for ensuring transportation of POL products according to international and local industry best practices. PSO officials from international marketing and logistics department
briefed the haulers, among other stakeholders, on the “depletion of old tank lorries and their respective replacement”. However, the proposed replacement plan did not go well with owners of oil tankers who link materialisation of the proposal to devastation of their businesses. This replacement, according to haulers, would leave some 1,500 of their 9,000 oil tankers, enlisted with PSO’s Karachi zone, out of work. “They want us to upgrade our vehicles meaning replacement with new ones. But we told them that our vehicles are fit for transportation,” APOTOA Chairman Akram Khan Durrani told Pakistan Today. The APOTOA chief said the two sides had exchanged views on the proposed plan on Saturday but a final decision would be taken after negotiations in the next meeting which was yet to be scheduled. “We told them all we can do is colour our vehicles uniformly,” Durrani said, adding it would be unaffordable for haulers to buy new lorries. One oil tanker, he said, costs over Rs 10 million. APOTOA Senior Vice President Hazrat Ali Afridi said carrying out the replacement would affect at least 1,500 oil tankers and according to a rough es-
timate each of the owners would be losing at least Rs 5 to 6 million. Rejecting the plan to change the vehicles, Afridi said current market value of one old vehicle ranged between Rs 0.8 million and Rs 1 million. This means if replaced, the combined loss to the affected transporters would be somewhere around the Rs 1.5 billion mark, he said. The APOTOA officials said they might consider the proposal positively if PSO compensated the loss incurred. “We, however, can think to go for the replacement if PSO cooperates with us in the shape of compensation,” said Afridi. The PSO, on the other hand, believes Saturday’s meeting with the stakeholders was a move towards standardisation of tank lorries and in compliance with best industry practices for safe and secure transportation of POL products nationwide. “This shall not only lead to safe movement but shall also help mitigate and address various issues,” a com-
Pakistan needs to be active in global halal market: Harvest Trading CEO ISLAMABAD ONlINE
pany statement said. At the meeting, PSO officials apprised their business partners about the future requirements of the company as chalked out on the basis of international and local industry best practices. PSO MD Mir highlighted the need for continuous support from company’s business partners to ensure uninterrupted fuel supplies nationwide. Mir also briefed stakeholders on the company’s new vision to be a regional and global player. The MD requested transporters to be open to change as it would be mutually beneficial for the company and all stakeholders. According to PSO, members of APOTOA and OTCA assured their support and commitment to the firm and lauded its logistics team for holding the maiden consultative meeting with stakeholders. “They put forward some suggestions to support the company’s vision of modernisation of its fleet. They also requested that the new logistics policy be designed with consultation of business partners,” said a PSO statement.
MFN status to India can raise Pakistan’s GDP by 2%: IPP research IslamaBad: Grant of MFN status to India could not only normalise trade relations between the two countries but could also boost Pakistan’s Gross Domestic Product (GDP) by 2 percent per annum according to research by the Institute of Public Policy. Former finance minister and Institute of Public Policy vice chairman Dr Hafiz Pasha said their organization’s research reflects that trade normalisation, commonly known as granting the Most Favored Nation (MFN) status to India, will also help trim down inflation on the back of availability of comparatively cheap Indian goods. Trade normalisation with India can also add to national funds by over Rs 470 billion per annum in addition to benefits of Rs70 billion to consumers in the shape of cheap imported goods, but this would require outsmarting smart Indian negotiators, he said. Pasha added that over a period of three years the country would achieve 700 million dollars in annual gains besides creating 200,000 new jobs. However, in comparison with Pakistan, India will only gain 0.5% in its GDP. Pasha said the Pakistan government should go ahead with granting MFN status to India, but should also get meaningful concessions while negotiating further reductions in the sensitive list maintained by India under the South Asia Free Trade Agreement. The government has not met its commitment of abolishing the negative list by the end of December 2012, citing concerns over the grant of MFN. ONlINE
Government must give better exposure to Pakistan’s exports by fulfilling the requirements of the global halal market because Pakistan has great potential to become the ‘halal’ hub of the region due to its geo-economic position, said Harvest Tradings CEO & ICCI Member Export Ahmad Jawad. He said Pakistan’s strength is a 100 percent halal production base from a Muslim country, with over 170 million consumers within Pakistan and a direct access to a grand total of 470 million halal consumers in Afghanistan, Central Asia and the Middle East. Per latest research by the World Halal Forum, the total size of global halal food market was worth $632 billion in 2009 and if we also include non-Muslim consumers, the total figure will be much higher; Jawad said. Halal industry experts believe the size of total global halal market (including all halal food, non food products and services) ranges from a minimum of $1.2 trillion to a maximum of $2 trillion per annum. Similarly, more than 80 percent of the world halal trade is done by non-Muslim countries, both in the West and East, who use the halal brand to their own economic benefit, Jawad said. In the West, USA, Brazil, Canada, Australia, New Zealand and France are the biggest halal suppliers. In the East, Thailand is the biggest exporter of halal certified products after which Philippines, Malaysia, Indonesia, Singapore and India are the leading halal products suppliers to the world, he said. Harvest Trading’s CEO further mentioned that Pakistan is still developing its own halal standards and there is no official halal certification body in Pakistan despite the fact that the country animal population is around 159 million. The countries with a Muslim majority are the most obvious target markets for halal products, especially for meat products. However, Muslims living outside the subcontinent and Middle East are more in need of halal products and services, which creates a big opportunity for suppliers of halal products, he said. In Europe, the market size of halal foods is estimated to be $66 billion, France having the largest share of approximately $17 billion. In the UK, halal meat sales are worth over $600 million annually, said Jawad. The American Muslims spend around $13 billion on halal food products annually. The GCC’s halal food imports are worth approximately $44 billion. Annual halal food trade in India is worth over $21 billion. Indonesia’s annual halal food expenditure is over $70 billion; he added.
CORPORATE CORNER PIA arranges Lahore visit for special children PSO holds meeting with logistics business partners
KARACHI: Abdul Kader Jaffer, chairman PJBF, hosted a dinner for his Canadian and Pakistani friends at Jaffer House. (l-R) Counsel General of Germany Tilo Klinner, State Bank Governor Yaseen Anwar, Mrs. Tilo Klinner, US Consul General Michael Dodman, host Abdul Kader Jaffer, Mrs Abdul Kader Jaffer and Salim Abbas Jilani. PR
KaRaCHI: PIA’s Corporate Social Responsibility (CSR) Program arranged a visit of terminally ill children to Lahore in collaboration with Make-a-Wish Foundation Pakistan. The children – Adnan, Kamil, Adnan Saqib, Iqra and Fiza flew from Karachi to Lahore on PIA flight PK 302 accompanied by Uzma Hasan, the Wish Coordinator. On arrival the special children were greeted at the airport by PIA District Manager Umber Draz, Station Manager PIA Manzur Junior, PIA CSR coordinator Saima Intekhab, PIA CSR volunteers Shehbaz Tahir, M Ashraf and Asghar Virk and Public Relations officials. The children desired to tour different areas in Lahore and among them one child Adnan wanted to be a pilot. His wish was honored by dressing him in a pilot’s uniform, while PIA DMD decorated pilot’s wing on Adnan’s uniform. The children visited Lahore Zoo, Minar-e-Pakistan, Lahore Fort, Badshahi Masjid, Allama Iqbal’s tomb and Lahore Railway Station. After a day’s tour of Lahore these children joined other special children for an event organised by Make-a-Wish Foundation at the Governor’s House. PRESS RElEASE
KaRaCHI: A meeting was convened at PSO House by the management of PSO to take onboard all stakeholders that facilitate the transportation of POL products on the new logistics vision and the roadmap to address future challenges. Members of all factions of Oil Tankers Cartage Association (OTCA) and All Pakistan Oil Tankers Owners Association (APOTOA) from Karachi and up-country attended the meeting. The basic objective and premise of the meeting with the logistics stakeholders was to move towards standardization of tank lorries and compliance with best industry practices for safe and secure transportation of POL products nationwide. This shall not only lead to safe movement but shall also help mitigate/ address the various issues. Speaking at the occasion, CEO & MD PSO appreciated the efforts of logistics team and the transporters and highlighted the need for continuous support from the business partners to ensure uninterrupted fuel supplies, nationwide. PRESS RElEASE
Samsung introduces world’s first curved OLED TV at CES 2013 laHORE: Samsung Electronics Co., Ltd has unveiled Samsung’s Curved OLED TV, breaking the barrier of innovation in home entertainment. The OLED panel is curved, which provides depth to the content displayed for a more life-like viewing experience. Additionally, consumers will enjoy the Curved OLED TV for its immersive panorama effect, which is currently not possible with conventional flat-panel TVs. When watching captivating content such as vast landscapes and scenes from nature on the Curved OLED TV, they will feel like they are surrounded by the beautiful scenery. PRESS RElEASE
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